When You Fix Negative Credit, You Can Fix Your Finances
View PDF | Print View
by: ChrisBlanchet
Total views: 17
Word Count: 542
During these economic times it has become a little more difficult to obtain approval for the credit we seek. A lot of lenders have instated a self-imposed limit on the amount of credit they approve for any given applicant. If you have a sub-par credit rating, that means that obtaining personal credit is not only more of a challenge, but it could be impossible. Luckily, there are some simple tactics you can use to improve your credit score and leave the lender with a more positive impression after making an official credit request.
There are two simple ways you can fix your credit score. The first involves hiring an agency to fix your credit. The second, more common way is a do-it-yourself solution that not only saves money but allows for a more permanent solution.
So how do you fix Credit? To fix your credit personal report, you need to have a copy of your current credit scores from top credit bureaus, namely Equifax or Trans Union. Examine these reports to check for any error, particularly in the account history and current status fields. Highlight the information that is inaccurate or negative. From these highlighted items, determine which poses the greatest risks to your personal credit report. Arrange the risks in an order starting with highest to lowest. Once the highest risks are known, the next step is to file a dispute with the credit reporting agency. The dispute or disagreement letter should be sent to the credit bureau, which shows erroneous account and it needs to state the reason for disagreement.
You can file a dispute letter for each of the negative and incorrect accounts. In accordance with the Fair Credit Reporting Act, the credit bureau has to complete your account verification in 30 days. They have to inform you about the updates within 5 days after the verification. If the bureau fails to prove that you are indeed responsible this credit, then the credit will be cleared from your account and your Fair Isaac Corporation (FICO) scores will increase correspondingly. This can help rather quickly.
Now, you can probably see how easily it would be for the credit reporting agency to respond to so many disputes on your record. But it is unlikely that all of the derogatory information will be cleared from your credit report. Still, you can reasonably expect to see an improvement to your credit score. But this is just the first step to fix your credit for long-term, personal finance reasons. In fact, after seeing an improvement in your score, you should focus on managing the rest of your personal finances properly, including creating a realistic budget that will allow you to properly manage your credit.
In conclusion, when you decide to fix your credit you should start with the most damaging records on your credit report. The best way to fix your credit is to repay past due accounts and higher-balance accounts. If you are unable to clear these debts, you should examine your credit report for inaccurate and damaging information and file a dispute with the credit reporting agency on such matters. By increasing your FICO, you can focus more attention and resources to the areas that are holding you back in terms of your long-term personal finance plans.
About the Author
Chris Blanchet is the author of Help Fix My Finances, an e-book about legitimately taking back control of your personal finances, which is the basis of the Members Only program of the same name. You can visit his debt-free blog, How To Repay Debt. Get a totally unique version of this article from our article submission service
Rating: Not yet rated
